Tech giants whacked by global minimum tax rate

The Group of Seven (G7) finance ministers have committed to a deal that would see a minimum global corporate tax rate of at least 15%, which could result in hundreds of billions of dollars flowing into government coffers.

US Treasury Secretary Janet Yellen said it would mean an end to what she referred to as a “race to the bottom on global taxation”, while Facebook has stated that it expects to pay more tax in more countries as a result of the deal.

German finance minister Olaf Scholz claimed the deal was “bad news for tax havens around the world”. However, Irish finance minister Paschal Donohoe said any global deal needs to take small nations into account; Ireland has a corporate tax rate of just 12.5%.

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